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The Role of Small and Medium Enterprises (SMEs) in Employment Generation and Economic Growth: A Study of Marble Industry in Emerging Economy

Author

Listed:
  • Lara Al-Haddad
  • Muhammad Safdar Sial
  • Imdad Ali
  • Rahmat Alam
  • Nguyen Vinh Khuong
  • Thai Hong Thuy Khanh

Abstract

This study is undertaken to find out how SMEs contribute to the economy in terms of employment generation and its impact on the economic growth of the country. Small and Medium Scale Enterprises (SMEs) is accepted globally as a tool for empowering the citizenry and economic growth. In Pakistan efforts have been made by successive governments to increase employment opportunities, reduce poverty and accelerate economic growth by increasing foreign direct investment, diversifying the economy, enacting policy frameworks which favor small business ownership and entrepreneurship programs. Specifically, this study tends to figure out: how SMEs contribute to employment generation, whether a significant number of people is employ within the SME sector; whether the SMEs increase the income level of people. The total number of employees was 255 being selected randomly from Swat marble industries. A questionnaire was constructed and distributed to the selected respondents. The responses were collected and analyzed using the Statistical Package for Social Sciences (SPSS) analytical tool. The study exposes that SMEs play a vital role in employment generation. There is a positive relationship between SMEs and unemployment reduction. The result also shows that there is a positive relationship between SMEs and increase in income level. This study may be beneficial both for practitioners and academicians. For practitioners, the current study may help to devise policies and strategies concerning SMEs to generate employment opportunities. The current study may lead to the generalizability of existing research in the same field as for academic aspect is a concern.

Suggested Citation

  • Lara Al-Haddad & Muhammad Safdar Sial & Imdad Ali & Rahmat Alam & Nguyen Vinh Khuong & Thai Hong Thuy Khanh, 2019. "The Role of Small and Medium Enterprises (SMEs) in Employment Generation and Economic Growth: A Study of Marble Industry in Emerging Economy," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 10(6), pages 174-187, October.
    • Handle: RePEc:jfr:ijfr11:v:10:y:2019:i:6:p:174-187
    DOI: 10.5430/ijfr.v10n6p174
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    References listed on IDEAS

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    1. Asthana, Shekhar, 2022. "Twenty-five years of SMEs in tourism and hospitality research: A bibliometric analysis," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 8(2), pages 35-47.
    2. Henry Egbezien Inegbedion & Perejite Roseline Thikan & Joseph Olusegun David & John Oluwasayo Ajani & Fred Ojochide Peter, 2024. "Small and medium enterprise (SME) competitiveness and employment creation: the mediating role of SME growth," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-10, December.
    3. Bashir Ahmed Maow, 2021. "The Impact of Small and Medium Enterprises (SMEs) on Economic Growth and Job Creation in Somalia," Journal of Economic Policy Researches, Istanbul University, Faculty of Economics, vol. 8(1), pages 45-56, January.
    4. Hasrini Sari & Rachmasari Adinda, 2023. "Examining Customer Experience in Using a Chatbot," International Journal of Asian Business and Information Management (IJABIM), IGI Global, vol. 14(1), pages 1-16, January.
    5. Tuan Khanh Vuong, 2023. "The State of Art in the Effective Budget Process for Small and Medium-Sized Enterprises," International Journal of Economics and Financial Issues, Econjournals, vol. 13(4), pages 66-72, July.
    6. Akinlotu Olufisayo & Cavlan Gözde Inal, 2023. "Organizational Integration, Knowledge Management, and Sustainable Entrepreneurship for SMEs in Developing Economies," Economics - The Open-Access, Open-Assessment Journal, De Gruyter, vol. 17(1), pages 1-19.
    7. Maria Bano & Dr. Muhammad Nawaz & Touseef Ahmad & Fatima Ejaz, 2023. "The Performance of Small and Medium Sized Enterprises (SMEs) in Punjab: A Moderating Role of Corporate Image," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 12(3), pages 650-666.
    8. Ziyane, Barbara & Arogundade, Sodiq & Osei-Assibey, Kwame, 2023. "Entrepreneurship Development, Innovation and Township Economy in South Africa," MPRA Paper 117657, University Library of Munich, Germany.

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